Marathon Digital Holdings Reports 670% Revenue Surge amid Fivefold Bitcoin Production Boost
Summary:
Bitcoin mining firm Marathon Digital Holdings reported a 670% year-on-year surge in revenue for Q3 2023, attributed to a close-to 500% increase in Bitcoin production. The successful quarter also led to a net income of $64.1M and a boost in hashrate, partly fueled by a hydro-powered enterprise in Paraguay. Also notable is the reduction of the company's long-term debt to 56%, realizing over $100M in cash savings for shareholders.
Experiencing a considerable 670% boost in revenue year-on-year, Bitcoin miner Marathon Digital Holdings reported a dramatic increase in Bitcoin production of nearly 500% in 2023's third quarter. According to a Nov. 8 report, this extraordinary outcome swung Marathon to a quarterly net income of $64.1 million. The reported leap in financial triumphs was partly due to a 467% escalation in Bitcoin production, rising from 6.7 Bitcoins mined in Q3 2022 to a staggering 37.9 Bitcoins in Q3 2023. In parallel, Marathon's activated hashrate surged 403% in the same span. Marathon's Q3 financial report highlights include a revenue of $97.8M courtesy of the increase in Bitcoin production and soaring Bitcoin prices, a $43.7M improvement in adjusted EBITDA, an 8% rise in hash rates bolstered by hydro-powered operations in Paraguay, and a 56% reduction in long-term debt.
Marathon's hashrate acceleration owes in part to a 27-megawatt hydro-powered mining project in Paraguay, revealed on Nov. 8. According to Marathon CEO and Chairman Fred Thiel, this substantial advancement is instrumental in fortifying the company's balance sheet leading up to the Bitcoin halving event set for April 2024. Additionally, the completion of a $417 million note exchange in September helped minimize Marathon's long-term debt to 56%, securing over $100 million in shareholder cash savings. Thiel further reported, "For the first time in two years, our combined cash and Bitcoin holdings surpassed our debt at the end of the quarter." Marathon is dedicated to amping up its hashrate for the near and medium future, planning to increase its current 23.1 exahash per second hashrate to 26 EH/s, with an additional 30% surge in 2024.
Marathon's share price (MARA) dipped 6.9% to $8.55 on Nov. 8 but bounced back 4.3% in post-market trading following the publication of Marathon's revenue report, per Google Finance's data.
Published At
11/9/2023 2:58:00 AM
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